Auditor White demands $7.4 million from private prison contractor

• “This is one of the largest civil demands made in the history of the Auditor’s Office,” said Auditor Shad White.

State Auditor Shad White announced Monday that his office has issued over $7.4 million in civil demands to Management & Training Corporation (MTC).

The demands have also been referred to the Attorney General’s Office for enforcement in court, White said.

“This is one of the largest civil demands made in the history of the Auditor’s Office,” said Auditor White in a statement. “We’re now turning this case over to the AG’s Office for enforcement to ensure accountability for taxpayers, and I hope they will litigate the case immediately.”

The Auditor’s Office said they started investigating MTC when allegations arose that MTC was not providing the prison staff required by their contract with the state. Investigators now says MTC failed to provide the minimum mandatory staff to ensure the safety of inmates and prison employees but were paid as if they had.

The Auditor is seeking the following:

• $462,299.32 for improper staffing credits invoiced to the Mississippi Department of Corrections for the operation of the East Mississippi Correctional Facility
• $959,240.06 demand for improper staffing credits for the operation of the Marshall County Correctional Facility
• $6,002,027.92 demand for improper staffing credits for the operation of the Wilkinson County Correctional Facility

The Auditor’s Office has investigated and made demands against MTC in the past. In 2021, White’s office started investigating MTC when allegations arose that MTC was not providing the prison staff required by their contract with the state. Investigators then found MTC failed to provide the minimum mandatory staff to ensure the safety of inmates and prison employees but were still paid by the state as if they had.

In November 2022, White issued a $1.9 million demand to MTC based on an analysis of one of the three prisons MTC operated in the state. Then in September 2023, MTC voluntarily agreed to send roughly $5.1 million back to the Mississippi Department of Corrections as a result of the investigation. 

“I don’t care how big of an out-of-state company you are or how many campaign donations you make to the other politicians, if you owe taxpayers money because you failed to live up to a contract with government, we will demand you pay it back,” said White. “No free rides on the backs of taxpayers.”

MTC Responds

MTC issued a response to the Auditor’s demand on Monday, saying despite prior payments from 2023, the Auditor issued new demands against MTC relating to all three facilities in May 2025.

“MTC again worked to resolve discrepancies in MOSA’s calculations, providing documentation and engaging in further discussions. During that process, MOSA acknowledged errors in its own calculations and substantially reduced its demands. However, the revised demands continue to be unsupported by the documentation and include interest totaling more than $3.2 million resulting primarily from MOSA’s delays and re-calculations,” MTC asserts.

MTC went on to state that the staffing of prisons in Mississippi has long been a challenge and was only made worse by the COVID pandemic.

“Mississippi faced the same issues at its state operated prison facilities. MTC and the Mississippi Department of Corrections (MDOC) were in continuous discussions on how to handle the issue. MDOC was fully aware of and supported MTC’s plan to use available contract funds to increase wages, pay overtime, offer incentive bonuses, expand recruiting and retention efforts, and make capital improvements to ensure the facilities were safer and more secure,” MTC stated. “Formal contract amendments did not always keep pace with urgent staffing and operational needs. During those periods, MTC and MDOC often addressed necessary changes through staffing plan adjustments and by using available contract funds for higher pay, incentives, recruitment, onboarding, training, and retention efforts. MDOC employees and onsite contract monitors were fully aware of the steps MTC was taking, knew of the funds MTC was reinvesting in staffing and operations, and reviewed and approved the staffing credit calculations included within each invoice submitted by MTC.”

On Friday, “based on the facts, evidence and correct calculations pursuant to the contract,” MTC said it offered $4.5 million to the Auditor to resolve these issues, which represents the principal allegedly owed plus reasonable interest and costs. Yet, MTC said instead of continuing to work together with MTC in a collaborative manner on these issues, the Auditor decided to issue a press release, calling it “not helpful nor is it productive for the State of Mississippi.”

“When questions were raised regarding staffing deficiencies and vacancy deductions, MTC acted in good faith,” said Michael Bell, vice president of MTC corrections. “We conducted our own review and voluntarily paid over $5.9 million. That’s what an honest partner does. It is deeply disappointing and fundamentally unfair to ignore our efforts to work with MDOC to address the staffing challenges we both face in operating correctional facilities.”

With the Auditor rejecting MTC’s offer, MTC said it has no choice but to let this matter proceed to litigation.